The new venue, the Navy Bar and Officers’ Den in Mosley Street next to Newcastle’s St Nicholas’ Cathedral, was granted a 2am licence.

There will be a bar on the ground floor, topless dancing on the first floor, and table dancing on the second floor where for #10 girls will strip to a G-string.

Church leaders argued the location was inappropriate and nearly 1,100 churchgoers signed a protest petition.

There was also an objection from the former Chief Constable of Northumbria and ex-Commissioner of the Metropolitan Police, Lord John Stevens, who is now a security adviser to the Prime Minister.

The premises were formerly occupied by a bar and restaurant called @Home. The application was from Jesmond-based Navy Bar Investments Ltd.

The city council’s licensing committee was told the company has shared management with the Utopian Leisure Group run by Tyneside businessman Bob Senior.

Solicitor Richard Arnot representing the applicant said: “It is an extremely sophisticated and well-managed group of companies.”

Following an all-day hearing, members gave the go-ahead on condition nobody under 18 is allowed on the premises and there is no adult entertainment on the ground floor.

Measures are proposed to stop noise and nuisance.

Members suggested talks with the cathedral on funding a CCTV scheme on the lane behind the premises where there have been problems with anti-social behaviour in the past. Under the terms of the licence, the club can operate from 11am to 2am Monday to Saturday. On Sunday, the hours will be noon until 12.30am, and on the first and second floors where dancing will take place, 7.30pm until 12.30am. The objectors can appeal.

In a joint statement after the hearing, Canon Peter Strange and Canon Robert Gage, said: “The Cathedral community still feels considerable concern about the effects this establishment will have on the safety and well-being of the many children who visit our cathedral, more than 18,000 in the last 12 months.”

A series of senior church representatives attended the hearing to voice their concerns.

They are worried about the effect on children and fear the venue will compromise the Heart of the City proposal, a #10m project to restore the area.

In a written objection, Lord Stevens, who lives in Northumberland and is a lay canon of the Cathedral, said: “There is a real potential for increased crime and disorder.”

But retired Chief Insp David Jackson, formerly of Newcastle police, said in his experience lap dancing clubs were well run.

Mr Jackson said he was neutral and was not supporting the application, but he knew Mr Senior who had been very supportive of crime prevention initiatives and had helped pay for police officers in the Bigg Market area.

Asked whether he agreed with the comments of Lord Stevens, his former boss, Mr Jackson said: “I disagree.”